Moldova overcomes the crisis and takes measures to resist the second wave
Moldova overcame the global financial crisis and is in the process of economic revival which is evidenced by the GDP growth of 4.7% in the first quarter in comparison to the same period of last year. This was announced by Premier Vladimir Filat at the opening of the sixth investment week Moldova Business Week 2010.
Filat said the GDP growth inspires optimist to the government and allows giving a realist look to the future.
"We still need to work hard for attaining a sustainable growth, and the role of foreign investors is crucial at this point", said the Premier.
Vice Premier, Minster of Economy Valeriu Lazar also believes the Moldova's economy reached the bottom of the crisis and begins to float.
According to him, the crisis pointed out to a number of system errors in the economy and taught the government a lecture. The officials realized the unexplained and excessive share in the industry, which caused, overall, a massive outflow of labor force, target of a minimum number of markets, full dependence on imported equipment, direction of most of direct foreign investments (60%) towards production sector, lack of "original" investments.
He mentioned that investments of large companies like Amway and Turkcell came to Moldova by means of the third-party countries like Russia and the Netherlands.
Among the government's priorities of attracting investments, Lazar named energetic and transport sectors, logistics and quality standards.
According to him, Moldova's advantage resides in its access to the EU and CIS markets, profitable tax system, and authorities' openness to create maximal beneficial conditions for investments.
Ex-Speaker and ex-Minister of Economy Marian Lupu reminded that six years ago Moldova adopted appropriate legislative framework which excluded any discrimination of foreign investors, giving them equal rights with domestic businesses.
Lupu mentioned that the government's openness in the dialogue with businesses is an important factor of its development.
"The transparency of economic policies gives much more chances to attract long-term foreign investments", he said.
Lupu is sure that the political stability in Moldova required by investors will surely come, but called the authorities to ponder if the crisis culminations has really been reached, or preparations for a new wave are needed. He called the government to think in what way the crisis will influence the economy and what are the development trends.
Lupu asked the Minister of Economy to explain the miserable growth of 1% of exports from Moldova to the EU and more than 40% growth to the Russian Federation. He also asked him how the financial and economic stability in Moldova will influence the external loans.
Lazar said that Russia's government shows a great openness in trade and economic relations with Moldova and these relations need to be preserved, simultaneously increasing the trade with the EU.
"Sooner or later we will reach certain equilibrium", he said.
Regarding the credits and grants from international financial organization and bilateral donors, the Vice Premier answered that the growth of the external debt from 13% to 20% of the GDP will not create difficulties for Moldova.
"We are far from the critical point", concluded Lazar.
Infotag's dossier: The investment week Moldova Business Week 2010 is taking place in Chisinau from June 22-25. The event is organized by the government, Moldova Investment and Export Promotion Organization (MIEPO) in cooperation with the Vienna Economic Forum with the financial support of Moldtelecom, Raiffeisen Lising, Orange Moldova, BCR Chişinău as well as with the support of the European Commission and UNDP.
Infotag
Comments